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The Ramsey Show Highlights

Used Husband’s 401(k) To Flip Houses and They Didn’t Sell

The Ramsey Show Highlights

Ramsey Network

Business, Education, Investing, Self-improvement

4.5839 Ratings

🗓️ 21 June 2024

⏱️ 8 minutes

🧾️ Download transcript

Summary

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Transcript

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0:00.0

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0:04.2

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0:06.6

So I was trying to help my husband about, I guess, a year and a half ago, September

0:12.5

2023 basically.

0:14.4

I asked if I could borrow from his 401 so that I could, you know, invest in flips and flip

0:20.7

them and then help pay down the

0:22.5

mortgage so he could retire earlier. The first house did not sell and I was nearing the end of the

0:28.0

loan, a high money loan, so I had to refinance. We refinance that. So now we're stuck with that

0:33.7

house, but the renter is paying for that. It's covering the expenses. I did it again with the hopes of, you know, the same goal. And now I'm stuck with a house

0:42.5

that is nearing its maturity for the hard money loan to be paid. So I'm trying to figure out

0:47.8

whether I should refinance and go because I'm going to suffer a loss. I can't sell this

0:53.5

for some reason.

0:54.3

It's the interest rates in the area that we're in.

0:58.3

So I don't know if I should sell it at a loss or refinance it into a hard,

1:03.5

I mean, to a conventional loan again so that I can pay back the hard money lender

1:07.4

and just keep the house and rent it for a while to recoup my money back

1:11.5

and try to resell it later.

1:12.7

I think we need to, we got a sunk cost fallacy here, and you keep digging yourself into a hole,

1:17.2

and you touch the hot stove, and then you did it again, and so I think we need to get out

1:21.3

of the real estate game entirely.

1:23.5

I don't know that I would, what's the loss on this that you would take it would be at least

1:30.4

12,000 okay I'm getting out do you guys have this money do you have it do you have any money in the

...

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